Bajaj Finance vs Jio Financial. Which Stock Is better for Investment? Q2 Results Review #Finance

so welcome back friends now we are going to talk about two big stock that is bajat Finance and Geo financial and these are the two stocks which have been darling of

most of the retail investor over the years when we talk about baj Finance of course over there and Gio text-decoration: none;">Finance in last one year many of the retail investor plun into this stock to understand no to basically earn a good amount of Profit now already Quarter Two result is out and these are the two biggest competitor when we talk about NBA FC and I got lot

many questions regarding know comparing of these two stocks so let me talk about that in detail and let us talk about the qu two result so when we talk about baj Finance baj

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance came up with a result it was an okay result not so great also orall if you see year on-ear growth is quite good almost 28% no ni growth and you can say 21% pet growth that was somewhat

in line with the estimate and that’s why you can see the stock after some time know it but no it was not a bumper result as such bumper result qu onter also only 5% ni growth was even the Profitability point of view also it was around 5% so it was not like no a great result

but it was an okay types result okay but now what Market is in that okay their expectation was a linear for bajad Finance see baj

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance if you talk about in last 10 years it has given you 36% C return even five years it has given a good return but when we talk about in last three years that last three years return is very Less almost you can not less

actually it is negative-3 to minus 9% so what is happening in B Finance so is it a big stock is always a favorite stock no well the answer may be no also because if the stock is at a price at

a Perfection now then it may not give you a great uh overall the Income and that is what you have to keep in mind and current L know this is what is happening with the baj none;">Finance when we talk about Geo Financial Geo Financial was heading a muted growth okay of course 10% growth someone on year on year even quar on quarter it was good around 26% but when we talk about year on Profitability increase it was around 3% only quarter

quarter it was increase of almost 120% but it was last quarter was not so great that’s why you can see the jump but no goo Finance when we talk about no it’s a you can say of

course it is an expensive stock in terms of p ratio but when we talk about Price to Book value it is Hing around no around two only and that is what is actually giving a comfort when we talk about The Price to Book value of uh uh Gio color: #1a73e8; text-decoration: none;">Finance when we talk about uh bajat Finance bajat none;">Finance is having an Price to Book of around six okay so that is where now people may think okay GI Financial but you have to understand why B Finance is getting higher

Valuation but that Finance is getting higher Valuation because of the consistency it is having over the years if you see if you can tell me tell someone in

nbfc which is the Benchmark index then someone will ask about know the bajat Finance the way it has controlled The NPS over the years in 25 years no know it has given a great

return but of course last two three years it is not able to give it but yes it has given a great because the way they are able to control the NP is the way they are able to grow Landing book by almost 25% year onye basis it’s not easy to grow like this okay it’s not at all easy when we

talk about the landing grow growth no and we see the composition also almost you can see 31% is the mortgage okay 13 around 14% Isme uh 7% is of security and Commercial uh 6% is Auto Sales and 7% is around sale text-decoration: none;">Finance and 20 % is consumer uh b2c now B2B b2c both they are doing a lot and there is a growth across across the vertical when we talk about almost consumer B2B is almost 41% growth consumer b2c is almost 32% growth almost 34% growth then what is not performing

what is not performing is the ruler landing and the mortgage ruler B2B no they are facing lot of issue in b2c also uh this is the point you have to keep in mind that at ruler level and at a mortgage level they are not able to grow the way it used to grow earlier otherwise across vertical they shown

a very very good lending growth and that is what you can see in the result also but the main problem is know when we talk about stock like bajat Finance who the price to Perfection you always

have to think whether this stock has something more to give or not because at the end of the day when you have like a six around Price to Book value okay now why I’m talking about Price to Book value see whenever you are checking nbfc stock or price to or banking Stock Price to Book value is

one of the very very important metric anything about below one is always know consider very good anything about two no two and above or three and above it’s expensive now here you know that as I told you the Price to Book value is much much higher for B

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance but they have delivered accordingly but at the end of the it’s not that everything you deliver till now will be continue in future of course the expectation is that that till from here also they will grow by around

20 22% no at ni level even at you can say the Profitability level so that will add you uh to the Valuation Factor but it is not going to outperform that is what my saying is because at the end of the when we see their uh complete composition or they are facing lot

of issues some of the issue which I want to talk about we’ll talk about bajet Finance first then we’ll talk about Geo bold; color: #1a73e8; text-decoration: none;">Finance some of the major issue what they are facing is that no now then net interest margin is Contracting okay now why they are Contracting because some of the bad Debts has gone up okay and elevated Loan losses

are there and which is why know they have to increase their provision okay by almost 77% now when you start increasing your provision and where your net interest M start going down this is one of the worest factor you can think about for any nbfc because at the end if even though you have a

Revenue growth but if your Profitability is not coming you have to slow down in your Revenue growth also that is uh no your Loan growth and all that and that you always have to keep in mind guys and currently this quarter uh you

can see there is a problem in name and problem in deps also now you may because Market is giving you accordingly premium because you have been delivering from years together so that you always have to keep in mind okay and currently the biggest worry factor for uh Geo

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance is the little bit increase in Loan now why it is increased of course the ruler segment is not able to give you that type of no growth and okay uh the recovery process

even though see recovery process baj fin is one of the best in landing business if they are not able to recover and if they uh NPS going that is a worry sign okay and I’ll not take it in in any way positivity such a great company which is the code strength is lending and collection of money

if they are not able to do it then okay so that is where I I actually know become skeptical for bajat Finance overall now when we talk about Geo

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance now see market cap of bat Finance around 4 and half lakh Gio

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance is around 2 lakh it’s almost double of Geo Financial okay now Geo Financial again their base is very low but the premium is given too much for geo Financial because the expectation

is that it is going to grow a lot in future of course their partnership with the black rock one of the biggest Asset Management company in the world you know their asset AUM is around1 trillion our GDP is around $3.5 trillion our three times of AUM they are handling okay they have

been partnership and they are going to launch Financial Services again coming into Mitchell fund again uh the scope is quite big for geo Finance they are actually venturing in lot many things

like when we talk about of course mutual fund Financial Services when we talk about home Loans they also going into that Loan against property Loans again Shares again they are going to see Geo

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance is much more you can say no uh AP with the uh technology and they are going to use complete database of what Geo mobile of course geom mobile is having and geom Mar is having and based on that they are going to give lot

many service to the end consumer and you know that that and their number of registration is almost more than 40 to 50 CR and that type of database know as Mukesh Amani told know the data is new oil and that is what they are trying to do that to Capitalize on that data and they are

going to know give lot many offers and all that of course Geo Finance app will be there again now they are going to bring their own payment system international payment

system again Geo Insurance they are planning so that know to give more Insurance again uh they are also providing shipping lease and all that no they are also going into you can say that consumer durables and payment platform again uh basically uh they are going to

do lot of data analytics and uh providing a instant saving account again you know there uh basically group level Compliance and all that of course they are going to send then yes another point is that no that uh FDI limit is going to go up by almost 49% so sheep leing is one of

also no business they getting into it so all this if you see the investment and what they are planning no it’s it’s big and Market is excited about this plan only Market is thinking that this is next bajat #1a73e8; text-decoration: none;">Finance and it may happen now whether it will happen or not that time will Cil but yes lot many thing is there in the plate and believe me in last one year it has been listed and know it has given you around 40% return not bad at all not bad at all

compared too Finance future expectations or future you can say price hike will happen stock price hike will happen only only depends on the how they are able to cope up with the future and

again how they are able to seamlessly roll out all these big big initiatives what we have talked about see if they are able to roll out and if they are able to do it nothing good than that because currently what is happening because they are rolling out so many things of course your expense will be

more and your Profitability will be less okay but and again lot many things are still in operable stage and La stage maybe after one year two years know when everything is listed I think then the market will give you much better premium because if you see here currently the you can

say the around the book value is around 215 or okay and if you see the price is around how much 320 OD so 1.5 so Price to Book value which is quite low which is quite low but it’s a holding company so some discount will be there but yes overall if you see you know they are having a good

growth uh and you know the track record of Reliance and all that I don’t have to tell you but yes in future they are expanding a lot okay but the only problem is when they are expanding you have to understand whether they able to control that bad Debts or NPS the way the

bajat Finance has able to do control over the years and why people are still buying bajat text-decoration: none;">Finance because they have a faith they have a history behind it Gio Finance has been there from last one year it is needed to be see whether they are able to bring

that type of growth again and where they are able to control NPS because Loan then but to give a Loan and the uh basically recovery of that Loan is very very important whether Reliance able to do that whether they able to control their bed depths

and that depends lot many things depends on that and this is why know currently if you ask that Valuation Factor Why Price to Book value currently go is less because of this only again they are in the Sheep leing business so basically Market will give you much more uh you can say

premium when you have a much more secured business like uh if you talk about baj Finance there is a secured and unsecured Loan now they’re trying to focus on much more

on secured Loan and they are going to make it less the unsecured Loan but yes if you have a better secured Loan yes then the chances are that you may uh your Profitability may increase and the market will give you more premium so

we when we talk about GI Finance but yes story is quite exciting of course the result is not so great till now but if they are able to know work on their whatever they are going to do the new

launches and all that no if they are able to focus on if they are able to deliver that nothing can stop that company correct and it can be a very very Ste competition to bajat none;">Finance very early to say whether it’s a next bajat Finance or not but yes uh if you see relatively they are going into areas know where the demand is high and

because the the execution track record of Reliance you cannot know ignore this point also so when we talk about these two stock baj Finance as I tell told you price to Perfection the only

thing is Now growth is missing the only thing is the Profitability is missing and the problem is growth and Profitability is that 202 but based on the Valuation I’m talking about quote onqu for mut growth but to in order to sustain this

Valuation it has to perform much better so let’s see hopefully it will do but otherwise I will I will think twice no before investing this stock Gio Finance I think

know if it comes down a little bit no and know overall then I think know you can think about it at a lower level and if you want to give a chance based on the promoters of the company and the execution of this company know over the time then you if you want to give chance of course because you can

give chance to this company but at a low lower level but yes uh things are exciting but time will tell whether Go Finance is able to know reach at what they’re thinking

about if you because see Gio Finance already gone up to 380 level now it is around know 37 something so already fallen by 30 20 to 25% from the top correct so but main thing is know how fast

the approval comes and how fast they are able to launch and all that that uh the new production that depends on that know the company future will be so hope you got my point what I try to uh convey you for both bat text-decoration: none;">Finance Gio Finance I hope you got lot of value inside guys uh if you like it then do share it and like it CashNews.co to everyone plus guys as I told you earlier

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